Hrw 


Duke  University  Libraries 
(Communication 
Conf  Pam  #344 


D'^^moissY 


MESSAGE  OF  THE  PRESIDENT. 


Richmond,  Va.,  March  12,  1863. 
To  the  House  of  Representatives  : 

In  response  to  jour  resolution  of  the  28th  ultimo,  I  herewith  trans- 
mit a  communication  from  the  Secretary  of  the  Treasury,  relative  to 
cotton  purchased  for  the  government  in  the  State  of  Louisiana. 

JEFFERSON  DAVIS. 


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COMMUNICATION  FROM  SECRETARY  OF  TREASURY. 


Treasury  Department,  C.  S,  A.,  ) 
Richmond,  March  11,  1863.      J 

The  President  : 

Sir  :•  In  reply  to  a  resolution  of  the  House  of  Representatives* 
passed  on  the  28th  ultimo,  and  received  at  this  office  on  the  5th  inst.* 
requesting  the  Secretary  of  the  Treasury  *'  to  inform  Congress  of  the 
amount  of  cotton  purchased  by  the  government  in  Louisiana,  specifying 
the  names  of  individuals  by  wKom  bought,  and.  whether  paid  for  in 
bonds  or  notes,  and  at  -what  average  price,  together  with  the  names  of 
the  agents  that  have  been  heretofore  and  are  now  employed  by  the 
government  in  purchasing  cotton  in  Louisiana,  and  whether  any  dis- 
crimination has  been  made  by  them  in  their  purchases  between  the 
producer  of  the  article,  and  those  who  held  it  on  speculation  ;  also  the 
regulations  which  have  been  adopted  by  said  agents  under  instructions 
from  the  department,  either  for  the  purchase  or  security  of  said 
cotton,"  I  have  the  honor  to  report: 

That  up  to* the  date  of,  and  embracing  the  latest  returns  received  at 
this  office,  42,374  bales  of  cotton,  costing  $1,988,481  40  have  been 
purchased  by  the  agents  of  this  department  in  Louisiana,  of  which 
amount  $1,980,101)  have  been  paid  in  bonds,  and  $8,381  40  in  trea- 
sury notes.  The  prices  paid  vary  from  8  to  13  1-2  cents  per  pound, 
tl^e  average  price  of-  the  entire  purchases  in  the  State  being  $9  38 
cents,  of  the  above  36,870  bales,  costing  $1,789,545  67  of  which 
$8,345  67  were  paid  in  notes,  were  purchased  under  the  direction  of 
J.  D.  D.  DeBow,  Esq  ,  General  Agent  of  the  Produce  Loan  for  Lou- 
isiana and  Mississippi,  by  the  following  sub- agents  appointed  by  him, 
and  approved  by  this  department,  viz  :  Ro.  Murdock,  B.  Hardison,  F. 
M.  Dawson,  B.  Cahn,  John  Hunter,  II.  S.  Fulkerson,  A.  L.  Page,  S. 
B.  Young,  Chas.  Cosgrove,  J.  H.  McNeil,  Ulger  Lawre,  Thos.  Reed 
and  Z.  Preston. 

In  November  last,  deeming  it  impracticable  for  one  person  to  super- 
intend properly  the  purchase  of  cotton  for  the  government  on  both 
sides  of  the  Mississippi  river,  I  divided  the  district  of  Mr.  DeBow, 
and  appointed  A.  W.  McKee,  Esq.,  agent  for  western  Louisiana. 
Under  his  direction  3,704  bales  of  cotton  have  been  purchased,  costing 
in  bonds  $198,900,  and  in  treasury  notes  $35  73.  These  purchases 
were  made  by  M.  M.  Rhorer,  sub-agent.     Mr.  McKee  has  also  ap- 


pointed  James  Rhorer  and  J.  T.  Belknap,  sub- agent,  but  no  purchases 
by  them  have  yet  been  reported.  No  other  persons  than  those  men- 
tioned are  known  to  this  office  as  having  been  authorized,  previously 
or  at  this  time,  to  purchase  cotton  for  the  government  in  Louisiana, 
and  so  far  as  known,  the  same  persons  are  still  employed  in  making 
purchases.  If  others  have  been  employed  their  names  have  not  yet 
been  reported  by  the  general  agents  for  confirmation. 

I  am  unable  to  answer  the  inquiry  whether  any  discrimination  has 
been  made  by  the  agents  in  their  purchases  between  the  producers  of 
cotton  and  those  who  hold  it  on  speculation,  possessing  no  information 
whatever  upon  the  subject.  No  instructions  have  been  issued  which 
have  authorized  any  such  discrimination,  and  the  reports  of  agents  do 
not  show  whether  any  discrimination  has  been  made.  All  the  agents 
have  been  instructed  to  purchase  cotton  on  as  advantageous  terms  to 
the  Governm.ent  as  possible,  paying  in  each  case  as  much  in  bonds 
and  as  little  in  cash  as  the  parties  selling  could  be  induced  to  take, 
and  in  no  instance  to  pay  more  than  the  current  market  price.* 

In  roply  to  the  last  clause  of  the  resolution,  I  have  the  honer  to 
report  that  no  special  regulations  known  to  this  Department  have  been 
adopted  by  the  agents  in  Louisiana,  or  in  any  other  State,  for  the 
purchase  and  security  of  Cotton.  All  the  purchases  of  cotton  by  the 
agents  of  this  Department  have  been  made  under  the  general  regula- 
tions, a  copy  of  which  will  be  found  enclosed,  issued  in  May  last,  to 
carry  into  effect  the  act  of  April  21st  previous.  These  regulations 
are  still  in  force  with  some  slight  modifications,  which  have  been  made 
in  several  instances  to  meet  particular  cases.  No.  1  has  been  entirely 
changed.  Instead  of  calling  for  proposals  for  sale  of  cotton  by  public 
advertisement,  the  agents  have  been  instructed  to  purchase  cotton  at 
the  market  price  if  it  could  not  be  obtained  for  less,  and  the  limita- 
tion in  No.  2  as  to  the  number  of  bales  to  be  purchased  on  any  one 
plantation,  has  been  rescinded.  These  are  the  only  changes  which 
have  been  made,  except  in  the  form  of  the  transfer  of  title.  The  new 
form  is  given  in  the  "addendum  to  the  regulations"  appended.  It 
will  be  perceived  that  in  this  form,  a  certificate  of  the  purchasing 
agent  is  required  to  the  effect,  that  the  cotton  is  in  good  merchantable 
order,  and  is  safely  stored  in  a  covered  building.  Every  invoice  of 
cotton  which  has  been  purchased  on  a  plantation  has  this  certificate 
attached  to  it. 

Respectfully  submitted, 

C.  a.  MEMMINGER, 
Secretary  of  Treasury. 


REGULATIONS  AS  TO  THE  PURCHASE  OF  PRODUCE 
UNDER  THE  ''ACT  TO  AUTHORIZE  THE  EXCHANGE  OF 
BONDS  FOR  ARTICLES  IN  KIND,  AND  THE  SHIPMENT, 
SALE,  OR  HYPOTHECATION  OF  SUCH  ARTICLES," 
APPROVED  APRIL  21,  1SG2. 


The  several  Proluce  Loan  Agents  appointed  in  each  State  shall 
accept  cotton  in  kind,  which  has  been  or  shall  be  subscribed,  in  ex- 
change for  the  eight  per  cent,  bonds  of  the  Confederate  States,  under 
the  following  regulations: 

1.  Each  agent  shall,  by  public  advertisement,  call  for  offers  to  be 
made,  setting  forth  the  quantity,  price  and  quality  of  the  cotton,  and 
the  place  at  which  the  same  is  deposited ;  and  upon  receiving  the 
offers,  he  shall  cause  the  cotton  offered  to  be  examined,  and  the  price 
ascertained  and  reported  upon,  by  an  experienced  cotton  broker,  and 
upon  being  satisfied  that  the   purchase   would   be  desirable,  cand  that 

•  the  place  of  deposit  is  safe,  he  may  conclude  the  purchases  to  the 
extent  prescribed  to  him  by  the  Secretary  of  the  Treasury.  When 
bids  are  equal,  preference  shall  be  given  to  subscriptions  heretofore 
made  to  the  Produce  Loan. 

2.  No  purchase  shall  be  made  of  cotton  deposited  on  a  plantation, 
unless  the  seller  shall  engage,  in  writing,  to  take  due  care  of  the 
cotton  while  on  his  plantation,  and  to  deliver  the  same,  at  his  own  ex- 
pense, at  the  usual  place  of  shipment  or  railroad  delivery,  whenever 
d:manded  by  the  Secretary  of  the  Treasury,  or  his  agents,  or  his  or 
their  assigns ;  nor  shall  any  such  purchase  be  made  of  less  than 
twenty  bales  on  one  plantation.  Wherever  purchases  of  less  than  one 
hundrcil  bales  arc  made,  the  Grovernment  Agent  is  authorized  to  have 
them  collected  and  deposited  in  a  warehouse,  or  upon  some  plantation 
where  proper  provision  can  be  made  foK  their  secure  custody,  and  for 
delivery  at  the  usual  place  of  shipment;  and  he  shall  report  to  the 
Chief  Agent  the  arrangements  thus  made,  with  proper  documents  for 
the  delivery. 

3.  Before  completing  the  purchase  the  Government  shall  see  that 
each  bale  of  cotton  is  sufficiently  secured  with  rope  and  bagging,  and 
is  deposited  in  a  warehouse,  or  if  on  a  plantation,  in  some  enclosed 
or  covered  building,  secure  from  fire,  to  remain  under  charge  'of 
the  seller  as  warehouseman.  The  purchase  shall  then  be  completed 
by  the  delivery  of  Confederate  bonds  or  stock  for  the  .price,  in  ex- 


6  . 

oliange  for  the  documents  transferring  the  property  to  the  Confede- 
rate States,  and  stipidating  as  specified  in  these  reguhxtions;  and 
thereupon  the  agent  shall  placp  upon  each  bale  a  Government  mark 
to  identify  the  same.  In  all  cases  he  shall  take  the  transfer  of  title  in 
duplicate,  setting  forth  the  particulars,  one  of  which  he  shall  forward 
to  the  Chief  Produce  Loan  Agent  of  the  State  wherein  the  cotton  is 
deposited,  and  the  other  to  the  Treasury  Departnieut  at  the  seat  of 
Government. 

4.  The  General  Agents  will  keep  books,  in  which  proper  entries 
shall  be  made,  designating  the  location,  quality,  quantity  and  value 
of  each  purchase,  with  such  other  particulars  as  shall  identify  the 
same  ;  and  shall  register  and  file  the  receipts  of  the  sellers  ;  they 
shall  alsj  debit  the  subordinate  agents  with  all  bonds  furnished  thorn, 
and  credit  them  with  the  value  of  the  cotton  purchased,  together 
with  the  commissions  for  purchasing,  and  at  the  end  of  each  month 
shall  make  to  the  Secretary  of  the  Treasury  a  full  report  of  all  their 
transactions  and  those  of  their  different  ngents. 

5.  The  agents  to  purchase  shall  be,  if  possible,  cotton  brokers,  or. 
other  experts.  "When  they  are  not  such,  the  agent  shall  call  in  aid 
one  or  more  cotton  brokers  or  other  experts,  to  settle  the  classification 
and  value  of  the  cotton,  and  the  commissions  allowed  shall  be  such  as 
are  customary  for  such  service,  to  be  certified  for  payment  monthly  by 
the  General  Agent  to  the  Treasury  D  partment. 

6.  The  Produce  Loan  Bureau  at  the  seat  of  Government  shall  re- 
gister the  original  receipts  forwarded  to  the  Treasury  Depaitment, 
and  shall  keep  books,  in  which  shall  be  entered  such  p  irticulars  as 
are  necessary  to  identify  the  parcels  of  cotton,  their  location,  sale,  or 
final  disposition.  Accounts  shall  also  be  kept  of  the  certificates 
issued,  and  of  the  disposition  thereof,  and  of  the  proceeds  of  sale,  or 
hypothecation  of  them;  and  such  other  accounts  shall  be  kept  as 
may  be  necessary  and  proper  for  carrying  into  complete  effect  the  act 
of  Congress. 

7.  The  following  shall  be  the  form  of  the  transfer  of  title  and  re- 
ceipt when  the  cotton  is  deposited  on  a  plantation : 

ADDENDUM    TO    REGUL\TIONS. 

In  place  of  No.  7,  in  Regulations,  as  to  the  purchase  of  produce, 
upder  the  act  to  authorize  the  exchange  of  bonds  for  articles  in  kind, 
&c.,  use  the  following  form: 

Bales  ;   Aggregate  Weight a % 

STATE  OF 


COUN 


TV    OF- 


Town,  or  PosloJ/lce,- 


The  undersigned  having  sold  to  the  Confederate  States  of  America, 

and  received  the  value  of   same  in  bonds, bales   of   cotton, 

marked,  numbered   and  classed  as   in  the  margin,  which   are   now  de- 
posited at hereby 

agrees  to  take  due   care   of  said  cotton  Avhilst  on  his  plantation,  and 
to  deliver  the  same  at  his  own    expense,  at 


in  the  State  of to  the  order  of  the  Secretary  of  the 

Treasury,  or  his  agents,  or  their  assigns. 


186 


The  undersined,  as  agent  of  the  Government,  certifies  that  the 
within  cotton  has  been  examined  by  him  or  by  a  competent  judge,  and 
that    its  character  ■will  rank  according    to    the  commercial   scale    as 

and   also,  that  the  weights  and  marks  are  as 

described — the  cotton  being  in  good  merchantable  order,  and  safely 
stored  in  a  covered  building 

The  undersigned  certifies  that  the  price  agreed  upon  is  a  fair  mar- 
ket price  at  the  present  time. 


Each  agent  shall  note  upon  the  margin  of  the  transfer  of  title,  of 
which  the  form  is  given  above,  in  addition  to  the  marks  and  num- 
bers, the  weight  of  the  cotton  purchased. 

C.  G.  MEMMINGER, 
Secretary  of  Treasury, 
August  26,  1862. 

8.  When  the  cotton  is  deposited  at  a  warehouse,  the  form  of  trans- 
fer shall  be  in  the  usual  and  customary  form  in  private   transactions. 

9.  Whenever  the  cotton  shall  be  sold  by  the  Government  agents,  a 
certificate  shall  be  appended  to  the  transfer  of  title  in  the  following 
form: 

Confederate  States  of  America, 

Treasury  Department, 

186  ■ 
This  will  certify  that  the  above- described  cotton  has  been  sold  to 

,  and  delivery  is  hereby  ordered  to  be  made 

to  him  or  his  order,  with  license  to  export  the  same  from  the  Confede- 
rate States  to  any  neutral  port,  upon  complying  with  the  requisitions 
of  the  law. 

Given  under  my  hand  and  seal  on  the  year  and  day  above  men- 
tioned. 


Secretary  of  Treasury. 

10.  Subscribers  to  the  Produce  Loan  may,  at  any  time  pay  the 
amount  or  value  of  their  subscriptions  in  treasury  notes,  instead  of 
delivering  the  same  in  kind,  and  such  payment  shall  entitle  them  forth- 
with to  receive  bonds  or  certificates  of  stock  in  exchange. 

C.  G.  MEMMINGER, 

Secretary  of  Treasury. 
May  21,  1862. 


AN  ACT 

To    authorize    the  exchange  of  bonds  for  articles  in  kind,  and  the 
shipment,  sale,  or  hypothecation  of  such  articles. 

Section  1 .  The  Congress  of  the  Confederate  States  of  America  do 
enact.  That  the  Secretary  of  the  Treasury  be,  andhe  is  hereby,  au- 
thorized to  exchange  the  bonds  or  stocks  of  the  Confederate  States  for 
any  articles  in  kind,  which  may  be  required  for  the  use  of  the  Govern- 
ment, the  said  articles  to  be  valued  according  to  such  regulations  aS 
the  said  Secretary  shall  make. 

Sec.  2.  It  shall  be  the  duty  of  the  Commissary  and  Quartermas- 
ter Generals  to  direct  their  various  officers  to  receive,  at  the  place 
of  purchase,  all  such  articles  purchased  as  are  applicable  to  their 
several  departments,  and  to  apply  the  same  in  the  same  manner  as  if 
purchased  directly  by  themselves;  and  the  officer  to  "whom  each  article 
is  delivered  shall  be  charged  with  the  value  as  declared  by  the  pur- 
chase, and  shall  be  bound  to  account  for  the  same. 

Sec  3.  The  said  Secretary  is  also  authorized  to  accept,  for  the  use 
of  the  Government,  in  exchange  for  the  said  bonds  or  stock,  cotton 
tobacco,  and  other  agricultural  products  in  kind,  which  have  been 
subscribed  to  the  Produce  Loan,  or  which  may  be  subscribed  in  kind, 
at  such  rates  as  may  be  adjusted  between  the  parties  and  the  agents 
of  the  Governinent :  Provided,  That  in  no  event  shall  he  receive  of 
cotton  or  tobacco  a  greater  value  than  thirty-five  millions  of  dollars; 
and  the  said  Secretary  is  further  authorized  to  deposit  the  same  at 
Buch  places  as  he  shall  deem  proper,  and  to  procure  adwnces  thereon 
by  hypothecation,  or  to  ship  the  same  abroad,  or  to  sell  the  same 
at  home  or  abroad,  as  he  may  deem  best ;  and,  to  assist  these  opera- 
tions, the  said  Secretary  may  issue  Produce  Certificates,  which 
shall  entitle  the  party  to  whom  issued,  or  his  endorsee,  to  receive 
the  proauce  therein  feet  forth,  and  to  ship  the  same  to  a  y  neutral 
port,  in   conformity  with   the  laws  of  the  Confederate  States. 

Sec.  4.  The  Secretary  of  the  Treasury  may,  from  time  to  time,  ap- 
point and  dismiss  such  agents  as  he  may  deem  requisite  to  carry  into 
eflFect  the  provisions  of  this  act.  Their  compensation  shall  be  as 
brokerage  upon  the  business  completed  by  them  at  such  rates  as  the 
Secretary  of    the  Treasury  shall  adjust  by  general  regubttion. 

Sec  5.  The  Secretary  of  the  Treasury  may,  from  time  to  time, 
issue  regulations  for  carrying  out  all  the  details  involved  in  the 
provisions  of  this  act,  which  shall  be  obligatory  upon  all  parties  con- 
cerned therein. 

Approved  April  21,  1862. 


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